
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, April 27, 1990                   TAG: 9004270954
SECTION: VIRGINIA                    PAGE: A6   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

REPORT: EX-STAFFER SIGNED GOP CHIEF'S NAME ON CHECKS

A fired bookkeeper with the state Republican Party signed the executive director's name on checks without his authorization, according to a published report today.

The Richmond Times-Dispatch also reported that an in-house investigation of alleged mismanagement of state Republican Party finances apparently showed that the executive director, Joe Elton, collected about $8,000 from the party in rental fees for furniture and word-processing equipment.

The $130-a-month rental agreement with Elton dated to 1985, when he joined the party as finance director, the newspaper said, quoting sources. It had been approved by his immediate predecessors as executive director. The equipment, owned by Elton, was used in the Virginia GOP's telephone fund-raising program.

The agreement was terminated last year. But Elton first received an advance for the final four months.

The sources said that Elton's name apparently was signed on checks for legitimate party expenses by the former bookkeeper, whom party officials accused of embezzling about $1,600. The bookkeeper has been blamed for the GOP's failure to pay thousands of dollars in federal payroll taxes.

The findings are contained in a report by an eight-member audit committee empaneled following the payroll-tax controversy in November. The report is supposed to be made public at Saturday's meeting of the central committee, the GOP's governing body.

Elton, a 20-year political operative who came to Virginia from his native Ohio, told the newspaper: "These are not things that I'm supposed to be commenting on. These are things that members of the audit committee are not supposed to be talking about."

Audit committee members, who interviewed party officials as well as current and former employees and studied GOP financial records, were silent on their findings.

Following the gubernatorial election, the party disclosed that it owed the IRS about $240,000 in employee taxes, interest and penalties. The party borrowed $125,000 to help pay the taxes and interest.

by CNB